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Decision CRTC 2000-1

Ottawa, 6 January 2000

Canadian Broadcasting Corporation
Across Canada

25 May 1999 Public Hearing
National Capital Region

Licences for CBC English-language television and radio renewed for a seven-year term

Introduction

Public Notice CRTC 2000-1 of today's date, which serves as a Preamble to this decision, sets out the Commission's overall views and concerns regarding the Canadian Broadcasting Corporation (the Corporation or CBC). These views are drawn from the public hearing as well as the cross-Canada consultations held to examine the role of the CBC in the Canadian broadcasting system and the renewal of the licences held by it. It also sets out the priorities of the Corporation for the new licence term.

This decision treats in more detail the commitments of the Corporation and the expectations of the public it serves, as well as the requirements that it must satisfy to fulfill its mandate under the Broadcasting Act (the Act), with respect to its English-language television and radio services. In the Appendix attached to this decision, the Commission sets out the specific conditions attached to the licences of the English-language television and radio networks and 15 of the English-language television stations owned and operated by the Corporation.

The licence renewal of the regional television station CBNT-TV St. John's, Newfoundland and its transmitters (application 199813738) is not discussed in this decision. The decision with respect to that licence renewal will be issued at a later date.

There has never been a time in my life, that now spans more than half a century, when the Canadian Broadcasting Corporation has not had a profound impact on what I understand Canada to be and who I am as a Canadian. (Public Consultation at Charlottetown)

1. The Canadian audience for English-language media is served by a huge variety of domestic and foreign choices. As a result, the potential audiences for CBC English-language radio and television are increasingly fragmented. This splintering effect will continue, as more entertainment alternatives become available.

Despite the challenges of this uncertain environment, both CBC Radio One and Radio Two have established clearly defined roles and garnered devoted audiences. In the Fall of 1998, tuning to CBC Radio One and Radio Two combined accounted for slightly over 10% of all radio listening by Anglophones across Canada. In all the consultations held by the Commission across the country, the most passionate defenders of the English CBC services were the radio listeners.

3. Similarly, in the world of specialty television services, CBC Newsworld has established itself as a distinct service, respected by the large audiences that seek out its journalistic expertise in times of crisis. Newsworld is watched each week by over 30% of Anglophone cable subscribers. Its regular viewers put a high value on newscasts scheduled at times convenient to them, and on current affairs programming reflective of various parts of Canada. Newsworld's licence renewal application is discussed separately in Decision CRTC 2000-3 issued today.

4. Conversely, CBC English-language television, by the Corporation's own admission, has a number of serious challenges. CBC itself identifies "fixing English TV" as a key priority in its strategic plan.

5. During the public consultations and the hearing, a number of problems were identified and solutions were proposed. As noted in the Preamble to this decision, the Commission considers that the highest priority for English-language television must be to increase the quantity of programming, particularly in the priority program categories, that is produced in and reflective of the regions of Canada. It is as a national, public broadcaster, firmly rooted in the regions, that the CBC will create the television audience loyalty it will need if it is to thrive in the coming years.

6. The audience for English-language CBC television has continued to decline during the past licence term and now accounts for slightly more than 10% of all viewing to English-language television services. Yet striving to regain audiences cannot be the CBC's only goal. A public broadcaster must have other, equally important objectives. It must be seen as providing a service that is unique, distinct from the private sector and valued by Canadians for the quality of its content. It must foster in its audiences the kind of loyalty that brought so many out to public consultations on cold winter evenings to speak about "their" CBC.

. the strategic demand should be to demonstrate that you can make a television service that will rebuild the constituency. That means getting to audiences, that means being distinctive. (Public Hearing at Hull)

7. The English television service of the CBC includes the CBC English television network, as well as 16 CBC owned and operated television stations in communities across Canada. The CBC holds separate licences for each of these undertakings and conditions with respect to the licences of the network and 15 of the owned and operated television stations are set out in the Appendix to this decision. The following discussions apply to the programming produced by the network as well as that originating with regional stations, since the Commission is of the opinion that viewers do not normally make a distinction between the two.

8. In the sections that follow, the Commission sets out its views on priorities for CBC English-language television and radio. In doing so, the Commission has listened to and supports many aspects of the Corporation's plans that were presented at the oral hearing that began on 25 May 1999.

9. In some cases, the Commission has imposed requirements beyond those committed to by the Corporation. Where it has done so, it is because the Commission is convinced that such changes respond directly to the needs of Canadians and will lead to public services that better reflect the mandate conferred on the CBC by the Act. A CBC that better responds to those needs and better reflects that mandate will be an institution capable not merely of surviving, but of thriving as a central element in the Canadian broadcasting system.

CBC Television

Balance through production in various parts of the country

10. The CBC must be rooted in all parts of Canada. There are practical reasons for a network and network production centres to exist, but it is critical that CBC programmers and decision-makers keep the regional reality of Canada constantly in their minds. The CBC's production centres are not there only to offer to the communities around them an hour or two of time at the margins of the peak viewing period. Regional input should be central to the planning, production, scheduling and evaluation of all programming.

CBC can help in our identification as Canadians by letting all of us, region to region, talk to one another. Our nation-building is helped by the sharing of our stories, of our music, and of our experiences. (Public Consultation at Sydney)

11. In this regard, the Commission notes the following recommendation from the Mandate Review Committee, which was quoted by Friends of Canadian Broadcasting at the public hearing:

The CBC should give its local management far greater flexibility in developing programming suited to the needs of each particular region.

12. It is clear from the record of this proceeding that Canadians from all parts of the country wish to see the diversity of Canada better reflected in the prime time schedule of CBC English-language television. In this regard, the Commission notes the efforts made by the Corporation to develop quality Canadian entertainment programs produced in different parts of the country. This Hour Has 22 Minutes, Nothing Too Good for a Cowboy, Da Vinci's Inquest and North of 60 are all examples of programs reflective of the particular sensibilities of the regions in which they are produced.

13. In attempting to evaluate the success of CBC English-language television in balancing its equally important national and regional roles, the Commission recognizes that, for most Canadians, the concept of regional reflection is subjective. In the last network renewal decision (Decision CRTC 94-437), the Commission noted:

Regional reflection is found in programming that deals with the social and cultural life as much as with the geography of a particular region. It does this through its depiction of the region's history, its stories, its music and its people.

14. Such a concept of regional reflection is not easily quantified. Nevertheless, the Commission considers that it is absolutely necessary for the CBC to increase the amount of programming in its peak time schedule that is reflective of all parts of Canada.

15. Peak time programs produced outside Toronto will, more often than not, be directly or indirectly influenced by their location. Such production, whether by CBC or by independent producers, will bring with it the added benefits of employing and training artists and technicians located in those regions as well as fostering the development of talent and of programs for the future. If CBC management personnel throughout the county are involved in decisions regarding all productions, the chances are even greater that the resulting programs will reflect the region in which they live and work.

16. The Commission acknowledges the step taken by the Corporation to reintroduce peak time non-news programming, to be produced in the regions for regional broadcast. In addition to that initiative, the CBC has committed to broadcast a series of the "best of" its regional programming, on the network. The Commission requires the CBC to adhere to its commitments, as follows:

To broadcast 13 original and 13 repeat half-hour episodes of regional non-news programming in each of its nine regions each year, beginning in the first year of the licence term. The programs will be broadcast in peak time.

Beginning in the fourth year of the licence term, and throughout the remainder of the licence term, to increase the number of regional non-news programming hours broadcast in peak time in all nine regions to 26 original and 26 repeat half-hour episodes annually.

We have a vision of the country that dares see itself from the regions toward the centre rather than a country that fancies national expression as emanating from the centre. (Public Consultation at St. John's)

17. While the Commission requires the CBC to fulfill its own commitments for regional, non-news programming, it notes that the CBC's commitment represents just 30 minutes per week of peak time increasing to one hour per week in the fourth year. From a financial perspective, the Commission notes the Corporation's projected allocation of $25 million over seven years to fund two new regionally produced non-news half-hour series pales in comparison to a projected amount of $140 million the CBC indicates it earmarks for "new media" initiatives during the same time frame. The Commission strongly encourages the CBC to plan for more production resources and greater authority to regional management, in order to increase the quality and quantity of programming produced in different parts of the country, for broadcast both regionally and nationally.

18. The Commission anticipates that some of the regionally produced programs discussed above will feature performing arts and new Canadian musical talent. It encourages the Corporation to search for new and imaginative ways to provide windows for such talent and to work with the arts and musical communities to promote and expose Canadian talent to Canadian audiences.

19. The following section sets out the Commission's determinations with respect to programming for national broadcast produced in various parts of Canada. The requirements discussed below are in addition to the CBC's commitments noted above.

.if you had to ask, in our view, is it more important for the CBC to develop a vigorous, strong, internet portal or to be strong in its regional radio and television, we would put regional higher. (Public Hearing at Hull)

Priority programming: regional voices

20. In its new policy framework for commercial television Building on Success (Public Notice CRTC 1999-97) the Commission announced a new concept of "priority" programs. All large commercial broadcasters will be required to broadcast a minimum of 8 hours per week of these programs in peak viewing hours. These types of programs, which include drama, music/dance, variety, long-form documentaries and magazine programs promoting Canadian entertainment, have always been well represented on CBC English-language television. However, the vast majority of this programming is produced in the Toronto network centre.

21. The Commission has examined the CBC's program logs for its English-language television network for the years 1995/96, 1996/97 and 1997/98. In the drama category, the three-year average for programs produced outside Toronto was approximately 2.5 hours per week in the peak viewing period (7:00 p.m. to 11:00 p.m.). Very little programming in Categories 8 and 9 was produced in areas of Canada other than the Toronto region during this period. Although the logs do not capture long-form documentaries as a separate category, the Commission notes that CBC currently schedules 2 hours per week of these programs in peak time. It is unlikely that more than 1 hour of these is produced in the regions. Thus, it appears that no more than approximately 3.5 hours per week of priority programming is currently produced outside of the greater Toronto area.

22. Averages over the same three years demonstrate that the CBC broadcasts weekly levels of 6.6 hours of sports, 7 hours of Canadian entertainment programs (Categories 7, 8 and 9), and 4 hours of foreign programs, in the peak time period.

23. The Commission considers that, if more priority programs are produced outside of Toronto, the peak time schedule of English-language television will achieve a better balance of national perspectives and regional voices. The CBC made a commitment to reduce the level of sports programming in its schedule, and to seek reductions of professional sports in peak time where appropriate. This, combined with a reduction of foreign programming, will create more space in the peak time schedule for productions other than news and sports from all parts of the country. In addition, the CBC should be able to redirect some existing resources from programs produced in Toronto, to programs produced in the other regions of Canada.

24. The Commission therefore imposes a condition of licence requiring the CBC to broadcast on its English-language television network during peak viewing periods, in each year of the licence term, certain minimum hours of priority programming for which the principal photography occurs more than 150 kilometres away from Toronto. In each of the first two years of the licence term, the minimum of such programming must be an average of 5 hours per week. In each of the next five years of the licence term, the minimum average must be 6 hours per week. The text of this condition of licence is set out in the Appendix to this decision. In fulfilling this condition, the Commission expects that the CBC will draw this priority programming from across the country in a reasonably balanced manner, over the licence term.

25. In addition to the peak time condition set out above, the Commission will continue to expect a reasonable level of production from regions outside of Toronto and the reflection of those parts of the country in all program categories on the English television schedule throughout the broadcast day.

26. Programming that originates on the French-language television service and is translated and re-broadcast on English-language television is a valuable way of providing Canadians with insights into the concerns of French-speaking Canadians. The Commission reminds the licensee that such programming would count as regional production, if it meets the category criteria. The Commission notes that the CBC has committed to a minimum of 40 hours per year of co-productions and exchanges between the English- and French-language television services. The Commission expects the CBC to fulfill this commitment and encourages it to maximize this co-operation as a means of increasing cultural interchange between the two official language groups.

A balanced peak time schedule

27. A considerable amount of time was spent at the oral hearing, and during the public consultations, discussing the appropriate mix or balance of programming that should be found on the CBC English television schedule. The question of balance includes that among the main program genres of news/information, sports and entertainment, as well as between programs reflecting national concerns and those reflecting the regions. In addition, concerns were expressed with respect to the CBC's tendancy to schedule original programming during the fall and winter, leaving the spring and summer schedules dominated by repeats.

As we move into the next century, CBC radio and television should . be a mirror that bounces ideas and creative expression of all sort from one part of Canada to the rest. (Public Consultation at St. John's)

28. In the Commission's view, the CBC's peak time programming does not yet reflect an appropriate mix of genres and production sources. The schedule should demonstrate more original programming throughout the broadcast year, and between 7:00 p.m. and 11:00 p.m., as well as a better balance both in programming genres and in the manner in which all parts of the country are reflected.

29. According to program logs submitted to the Commission, the CBC's full broadcast day schedule for the broadcast year 1997/98 consisted of 41% news and information programs; 40% drama and comedy; 15% sports; and 7% music/dance, variety and human interest.

30. In comparison to the overall daily schedule, programming offered to evening viewers consisted of less news, fewer dramas and comedies, but significantly more sports. For example, during the peak viewing periods of the 1997/98 broadcast year noted above, the CBC schedule was made up of 35% news and information, 33% drama and comedy, and 25% sports. The total of 7% in music/dance, variety and human interest remained the same.

31. In the sections that follow, commitments by the CBC to alter some programming strategies are discussed. Expectations and requirements for further changes imposed by the Commission are also set out. The Commission is confident that the changes committed to by the CBC, in combination with those required by the Commission, will have the effect of ensuring better balance in the CBC English-language television schedule.

News and information programming

32. Providing audiences with accurate, objective news and information about their country and the world is at the very heart of a public broadcaster's role. The CBC English-language television service has reason to be proud of its record in this area.

While I urge a return of local and regional TV and radio, I wish to emphasize that what is left of the national English programming on CBC is of extreme importance...[for example] the information and news programming which is so vital to our nation. (Public Consultation at Sydney)

33. The CBC's national evening newscast is widely viewed throughout Canada on both the main service and on Newsworld, reaching in excess of one million Canadians each night. Prime time public affairs programs such as The Fifth Estate, The Nature of Things, and Marketplace offer Canadians thoughtful and relevant information packaged in a highly professional manner. The series Witness and Life and Times provide peak time exposure for long-form documentaries, either independently produced by Canadians or acquired from foreign sources.

34. The Commission recognizes that the CBC's news and information programming reflects both national and regional issues. The regional supper-hour newscasts produced by regional television stations receive substantial viewing and offer an alternative approach to the coverage of local, regional and national issues offered by private sector counterparts. Nevertheless, many taking part in this process expressed concerns regarding the marked reduction of the CBC's presence in their communities. The Commission also notes with concern the closure of a number of the CBC's foreign news bureaus during the past licence term.

35. An accurate reflection of the diversity of Canada can only be achieved with a permanent journalistic presence in all parts of the country. The Commission encourages the Corporation to maintain and strengthen its coverage of regional issues in both news and public affairs programs, and to bolster its international news gathering capacity.

36. In the context of regional reflection, the Commission notes that Victoria, British Columbia is the only provincial capital with no CBC owned and operated television station. The Commission expects the CBC to reflect the greater Victoria area in the news and current events programming broadcast by CBUT Vancouver. As set out in Appendix 1 to the Preamble, it also requires the licensee to provide annual reports on the extent of that reflection.

37. The Commission accepts the Corporation's commitments with regard to weekday supper-hour and late night newscasts, and requires the licensee to honour those commitments throughout the new licence term. For the English-language television stations in Halifax, Montreal, Toronto, Ottawa, Winnipeg, Regina, Edmonton, Calgary and Vancouver, the CBC's commitment is to provide a minimum of 1 hour 30 minutes per day of regional/local news programming (one hour at the supper hour and a 30 minute late evening news program). The CBC's commitments with respect to Corner Brook, Sydney and Saskatoon will be fulfilled by rebroadcasting the 1 hour 30 minutes per day regional/local news programming from St. John's, Halifax and Regina respectively. For the stations in Charlottetown, Fredericton and Windsor, the commitment is to provide a daily minimum of 1 hour of regional/local news programming, half at the supper hour and half during a late evening newscast.

38. The Commission has re-imposed a condition of licence with respect to CBLT Toronto, prohibiting the solicitation of advertising in certain southwestern Ontario communities. The text of the condition of licence is set out in the Appendix to this decision. This condition is in keeping with its practice of requiring that a licensee provide local programming, in order to be able to solicit local advertising.

39. The Commission remains concerned over the lack of regional weekend newscasts on most CBC stations. These newscasts were dropped during the last licence term in response to budget reductions. At the public hearing, the Corporation indicated that it was studying the reintroduction of weekend regional news. The Commission considers that this should be a high priority for the CBC. Consistent with its stated emphasis on regional reflection and the need to reinvest in the CBC's core services, the Commission requires the CBC to reintroduce regional weekend newscasts on all owned and operated stations, by the beginning of the second year of the new licence term.

Drama and comedy programs

40. The CBC has long been a key source for original Canadian dramatic programming, including family dramas such as the Avonlea saga, gritty adult series such as DaVinci's Inquest, satires like The Royal Canadian Air Farce and This Hour Has 22 Minutes, and Canadian feature films and made-for-TV movies. Through the broadcast of such programs, the CBC has supported Canadian producers, employed Canadian performers and provided Canadian viewers with high quality entertainment.

Our culture defines us as Canadians. This includes everything from hockey to symphonies, art to satire, from mountains to food. It is an incredibly rich and varied culture. (Public Consultation at Vancouver)

41. During the broadcast year 1997/98, the CBC scheduled over 8 hours per week of Canadian drama, an amount that exceeded the Commission's expectation of 5.5 hours per week.

42. As part of these applications, the CBC made a commitment to broadcast a minimum average of 5.5 hours per week of Canadian drama in each year of the new licence term. The Commission accepts this commitment, and encourages the CBC to continue to exceed this minimum and continue to give Canadian drama pride of place in its peak time schedule.

43. Also as a part of these applications, the CBC has projected a $30 million investment in the production, acquisition and promotion of Canadian feature films for the English-language television service, over the first five years of the new licence term. The Commission expects the CBC to fulfill this commitment.

44. In the Commission's view, the public broadcaster has a particular responsibility to search out stories and talent from all parts of the country. The CBC is expected to continue its efforts to ensure that its drama programming is produced in, and speaks to, the varied regions of the country.

45. The Commission notes that virtually all of the CBC's drama programming is produced by independent production companies, with the assistance of the Canadian Television Fund (CTF), and encourages the CBC to continue to pursue such funding for its drama programming.

Music/dance and variety programs

46. The national public broadcaster has an important responsibility to bring to Canadians the best of Canadian popular culture, as well as performances by Canadian orchestras, dance ensembles and theatres across the country. The Commission notes that performance and variety programming has represented a very small portion of the CBC's peak time schedule in recent years.

We do not all have available libraries, concert halls, art galleries, sports arenas, or theatres. We count on the CBC to deliver these into our homes, isolated as many of us are. (Public Consultation at Winnipeg)

47. In this regard, the Commission expects the CBC to adhere to its commitment for the new licence term, to:

Each year, broadcast a minimum of 24 presentations of complete or substantially complete performances by a Canadian performing arts company.

Broadcast twelve of these performances each year in peak viewing periods.

The Commission is of the opinion that many of these productions could originate from outside Toronto. It encourages the CBC to continue to explore innovative and imaginative ways to provide a window for, and to work with Canada's many arts communities in order to bring programs of performing arts to television audiences.

48. The Commission recognizes that the CBC has made efforts to showcase Canadian musical talent over the last licence term. The Commission notes that the CBC has committed to continue to seek out and promote new Canadian musical talent in all parts of the country and to expose that talent to audiences throughout the country. The Commission expects the CBC to fulfill this commitment, and encourages it to feature more music/dance and variety programming drawn from all parts of the country in its peak time schedule.

Sports programming

49. The question of how much sports programming should be on the CBC schedule, particularly in peak time, was the subject of much discussion during this proceeding. It was raised at both the public consultations and at the May oral hearing. Many viewers expressed the view that the CBC has allocated a disproportionate share of peak time to professional sports. Many also suggested that this reflected the Corporation's dependence on commercial revenues. This reliance was seen to result in a focus on maximizing audience size rather than providing a balanced schedule of quality programming chosen in fulfillment of the CBC's public mandate.

I would agree with those who say there's too much sports programming on CBC TV. (Public Consultation at Charlottetown)

50. At the oral hearing, the CBC appeared to agree that sports programming was out of balance with other genres in its schedule. The Commission agrees with the CBC that sports is an important aspect of Canadian life that should be reflected by the public broadcaster. The CBC enjoys a well-deserved reputation around the world for high quality sports production. However, while the Commission recognizes that the revenues from some sports effectively subsidize the production of less profitable Canadian programs, it remains concerned that those financial benefits alone could dictate program scheduling, particularly in peak time. The Commission notes that sports programs (virtually all professional) represent an average of 25% of the annual peak time schedule, and that Canadian professional sports are widely available on commercial services. In light of this, the Commission considers it appropriate for the CBC to take action to create a more balanced peak time schedule.

51. The Commission therefore expects the CBC to fulfill its commitments with respect to televised sports made at the hearing. Specifically, these commitments include the following:

No increase in the overall proportion of sports programming in the schedule. The CBC stated that: "we will seek reductions, where appropriate, in the total amount of airtime we devote to professional sports, particularly during prime time."

A decrease of 120 hours per year in professional sports programming, by the end of the licence term.

An increase of 60 hours per year in amateur sports programming, starting in the first year of the new licence term.

To review all professional sports contracts as they come up for renewal.

Some are saying CBC should get out of broadcasting sports. Well, I am a firm believer in history and tradition and there certainly is a tradition of sports on CBC television that people have grown up with and expect. (Public Consultation at Edmonton)

Foreign feature films

52. While it is a more common practice to schedule non-Canadian "blockbuster" movies in peak time on French-language television than it is on English-language television, the Commission considers that such practices are inappropriate for either service.

53. Most Canadians have easy access to recently released non-Canadian feature films through commercial broadcasters, video rentals, and pay television services. The result of the CBC bidding for the rights to broadcast such films is to drive up their cost. This could ultimately result in less money for the CBC to spend on Canadian programming that might more appropriately fulfill its mandate.

The CBC has adopted a very traditional commercial model in attempting to compete with private networks for ratings with sports and blockbuster-type dramatic programming. (Public Consultation at Regina)

54. The Commission considers that the CBC's television services should not broadcast non-Canadian blockbuster movies in peak time. There is no valid public policy rationale for the CBC to continue to acquire and broadcast the most popular and widely available non-Canadian films. In the Commission's view, the only reason for scheduling such programs, particularly in peak time, is to maximize ratings and advertising revenue. This is not an adequate rationale for the use of the most valuable time in the public broadcaster's schedule. The Commission considers that the mandate of the CBC would be better fulfilled by devoting peak time to a balance of distinctively Canadian programs.

55. Accordingly, the Commission has prohibited the CBC by condition of licence from broadcasting in peak time the most popular non-Canadian films for a period of 10 years following their theatrical release as well as all recently released non-Canadian films. The text of the condition can be found in the Appendix to this decision.

Programming for children and youth

56. A wide variety of children's programs is available to English-speaking Canadians on commercial, educational, specialty and pay television services. Notwithstanding this availability, because the CBC reaches almost all Canadians, it has a unique responsibility to provide informative, educational and entertaining programming directed toward Canadian children and youth, and to foster the development of the artists who represent the future of the television industry.

The benefit of having a national public broadcaster whose programming is not totally profit oriented or profit driven is that youth have an opportunity to be seen not just as a vital market, but also as a vital part of the community and the nation in which we live." (Public Consultation at Charlottetown)

57. As part of these applications, the CBC indicated that it plans to "produce, co-produce or acquire several programs that further broaden the range of program offerings for pre-school children." The Commission expects that, in each year of the new licence term, the CBC will broadcast a minimum of 15 hours per week of Canadian programs directed to children 2 through 11 years of age, and 5 hours per week of programs directed to youth (ages 12-17). As set out in Appendix 1 of the Preamble, the Commission requires the CBC to report on the implementation of these commitments in its Annual Report.

58. The Commission has reimposed conditions of licence relating to advertising directed to children up to 12 years of age, and the prohibition of advertising in or between programs directed to pre-school age children, which are set out in the Appendix to this decision.

Level of Canadian programming

59. The English television service of the CBC has made great strides in "Canadianizing" its schedule during the last licence term. It has significantly surpassed the expectations of the Commission for the last term, broadcasting 65% Canadian content throughout the broadcast day, and attaining levels as high as 90% during the peak viewing periods.

60. As part of these applications, the CBC committed to maintain a minimum of 75% Canadian content throughout the broadcast day, and a minimum of 80% in peak viewing periods. The Commission is satisfied with this commitment and encourages the CBC to continue to exceed the minimum.

Diversity of foreign programming

61. The CBC has indicated that its current schedule features slightly less U.S. produced foreign programming than other non-Canadian programming. The CBC has made a commitment to maintain that roughly equivalent balance between U.S. and other non-Canadian programming. The Commission expects the Corporation to maintain, at a minimum, its current balance of U.S. and other non-Canadian programming throughout the licence term, and encourages the pursuit of an even greater diversity of sources of foreign programming.

On a day-to-day-basis, what [more regional programming] begins to mean, in fact, is that there will be more in-depth analyses, more documentaries, more biographies, more cultural and arts programs, more comedy done by local artists, local performers, local technicians, local support staff, local suppliers and all of those are a very strong and effective impact on our economy. (Public Consultation at Edmonton)

Independent production

62. In the current licence term, over 50% of the programming on CBC English-language television (other than news, public affairs and sports) was acquired from independent sources. The CBC has committed to continue this support for the Canadian independent production sector by maintaining this level, as a minimum, over the new licence term.

63. The Commission notes the CBC's statement that "production from outside Toronto represents more than half the total investments in fund-supported projects". The Commission encourages the Corporation to continue to acquire programming from the Canadian independent production sector and to ensure a reasonable regional balance in the licensing of independent productions.

64. As set out in Appendix 1 to the Preamble, the Commission requires the Corporation to identify in its Annual Report, the number of hours of programming acquired from independent producers that is broadcast in peak time, and over the broadcast day.

65. The Commission notes that the CBC and the Canadian Film and Television Production Association (CFTPA), have been working towards the formalization of a "Terms of Trade" agreement which will govern the relationship between the Corporation and independent producers. The public broadcaster should be a model for others in respect of its dealings with independent producers. Its plans should be transparent, in order to foster collaboration with the independent production industry. The Commission anticipates that this agreement will ensure a mutually satisfactory relationship between these two important sectors of Canadian cultural life.

CBC Northern Service

66. The CBC's Northern Television Service provides a unique and vital service to the population of the most northerly reaches of Canada. It serves both native and non-native members of often isolated communities.

67. In 1995, the Corporation launched a daily pan-arctic newscast, Northbeat, produced in Yellowknife with reports from bureaus in Iqaluit, Whitehorse and Montreal. Northbeat gathers its material from Baffin Island and Nunavut in the East, to the Mackenzie Valley and the Yukon in the West. The reports are provided in the aboriginal languages of Slavey, Chipewyan, Dogrib, Cree and Inuktitut, and are subtitled in English.

The North needs a strong public broadcaster, because it is not only a small market in total but because it is also a very segmented market within itself. (Public Consultation at Yellowknife)

68. The Commission expects the CBC to honour its commitment to continue production of a daily 1 hour pan-arctic news program.

69. Further, the Commission is of the opinion that the concept of regional reflection with respect to the CBC's Northern Service should mean further integration of native-produced programming into the schedule, and encourages the Corporation to find ways to bring more northern-produced programming to the rest of Canada.

Societal concerns

Violence

70. The Commission commends the CBC for its efforts to avoid gratuitous violence in its television programming. At the public hearing, the Corporation agreed that it would continue to adhere to the CAB's Voluntary Code Regarding Violence in Television Programming. A condition of licence to this effect is set out in the Appendix to this decision.

Sex-role portrayal

71. The CBC should play a leadership role in ensuring that women are fairly represented in all aspects of CBC television operations. For this reason, the Commission continues to expect the Corporation to balance the representation and portrayal of women in the programming seen on CBC English-language television in a manner that reflects the rightful place of women in Canadian society, and in such a manner as to eliminate negative stereotypes.

Concerning the discussion of issues hidden in closets, I have been pleased and surprised by the empathic and ongoing discussions about issues surrounding women and about sexism, violence against women and children, and feminism. (Public Consultation at Winnipeg)

72. The CBC must also continue to adhere to its self-regulatory guidelines on sex-role portrayal. The Commission has reimposed a condition of licence to this effect, set out in the Appendix to this decision.

Closed captioning

73. The Commission commends the CBC for significantly exceeding the levels of closed captioning that were expected of the network in the most recent renewal decision. The Commission notes that 97% of the CBC's English-language peak time programming distributed to national audiences is currently captioned, as is 74% of its programming over the full broadcast day. As part of these applications, the CBC committed to maintain the current level of 97% of captioning in peak time, and to increase captioning over the full day to 89%.

74. The Commission expects the CBC to maintain its existing levels of captioning and, consistent with its policy for commercial, English-language television, requires the CBC to ensure that at least 90% of the programming distributed nationally is closed captioned in each year of the licence term.

75. In the last licence renewal, the CBC was required, by condition of licence, to caption all locally-produced news programming, by the end of the current licence term. The Commission reimposes this condition of licence, as set out in the Appendix. In the context of this renewal, the Corporation also made a commitment that 100% of all programming produced and broadcast by CBC owned and operated television stations will be captioned throughout the new licence term. The Commission expects the CBC to fulfill this commitment.

Descriptive Video Service

76. Descriptive Video Service (DVS) involves the use of a secondary audio channel to provide a description of the programming for the visually impaired. The Commission's approach to this emerging technology has been to support it in principle, while acknowledging that it would be premature to impose specific requirements on licensees. In Building on Success (P.N. 1999-97), the Commission strongly encouraged all commercial television licensees to adapt their programming to include audio description of programming for the visually impaired wherever appropriate.

77. The Commission encourages the Corporation to continue to develop the use of DVS, and to cooperate with the National Broadcast Reading Service in order to effect the gradual implementation of DVS.

CBC Radio

Introduction

78. For many Canadians, CBC radio is the jewel in the crown of public broadcasting in this country. For many participants in the Commission's public process, English CBC radio is what English CBC television can and should be. It provides a clearly distinctive service unlike anything offered by any commercial broadcasters.

I love the CBC because it speaks to my heart and to my soul and mostly to my mind. It is an overused cliché, but to me it really does tie the country together. (Public Consultation at Regina)

79. CBC English-language radio provides Canadians with in-depth news and information about their region, their country and the world. It showcases Canadian entertainers and performers. It provides an identifiable sense of place and culture, so that wherever the listener is, in Canada or abroad, connecting with the English CBC radio services is, in fact, connecting with Canada.

80. While the achievements of CBC radio are laudable, throughout the public consultations the Commission heard concerns about the service. Many people expressed the opinion that programming decisions made in response to budget reductions have resulted in a perceptible reduction in the quality of the CBC's English radio services. Of particular concern to many was a perception that local programming has suffered. Based on its review of the financial information the CBC filed with its applications, the Commission notes that English-language regional radio operations were also subjected to budget cutbacks. Fewer resources are allocated to national programs for original reporting, programs are repeated more often, and overseas bureaus have been closed. Although the hours allocated to regional programming have been maintained, less original production is being done regionally.

I personally have never accepted the notion that Toronto is at the centre and that the rest of us are in regions. .... By having different programs originating in different broadcast centres, there is a much better chance that a balanced and relevant menu of talent will be exposed to the listeners. (Public Consultation at Vancouver)

81. Consistent with the terms of this decision, the Commission is concerned about the reduction in quality of the regional services and CBC English-language radio programming as a whole.

82. The Commission notes from the CBC's financial projections for its English-language regional operations that the worst may now be behind it and that the CBC expects funding levels to gradually increase over the new licence term. The Commission expects the CBC to re-allocate adequate resources for its regional programming and its core services.

83. The Commission also expects the Corporation to ensure that local issues and concerns are covered during regional programs, and that the regions continue to be broadly reflected in national programming.

Sponsorship

84. The Corporation's licence renewal application included a request to amend the existing condition of licence prohibiting it from broadcasting advertising on English-language radio. At the hearing, it modified its request, proposing a condition allowing it to broadcast brief sponsorship messages identifying parties who contributed financially to a program or cultural event broadcast by it. The Corporation also indicated that all such financial contributions would be remitted to a third party rather than to the CBC. It specifically stated that news and public affairs programs would not be available for sponsorship. Sponsored performances broadcast by the CBC would be over and above the performance programming currently broadcast by the CBC.

. having radio without commercials is fundamental to your success and if necessary, I, for one, would be willing to pay a special donation for radio each year with my income tax form. (Public Consultation at Charlottetown)

85. The request by the CBC to allow certain sponsorship messages gave rise to considerable controversy among listeners. Many interveners reminded the Commission that the non-commercial character of CBC English radio is one feature that sets it apart from other radio services. Allowing the Corporation to broadcast short sponsorship messages as it proposed, was seen as one step closer to allowing on-air advertising by the public broadcaster.

86. The licensee stated that it has no intention of reverting to on-air advertising. It submitted that partnerships are essential to the survival of several cultural groups and orchestras in Canada. Broadcasting sponsorship messages on radio would allow these groups to attract sponsors and would allow the Corporation to provide quality programming at lower cost. The CBC estimates that the value of these sponsorship messages could reach $500,000 annually after five years.

87. The Commission had two major concerns about this issue. Would sponsorship make the public radio service sound more commercial? Would the availability of sponsored programs influence the CBC's programming choices, possibly leading to concerts and shows by artists with a higher profile, who could attract sponsors, being aired in preference to those of lesser known artists?

CBC Radio has been commercial-free for a quarter century, and it sets the standard for public radio broadcasting in the world today, both for quality programming and for its appealing non-commercial sound. (Public Hearing at Hull)

88. The Commission is satisfied that the CBC does not intend to revert to on-air radio advertising. However, it is of the view that naming sponsors would add a commercial tone to the public radio sound and place in jeopardy the profound attachment of its listeners. In the Preamble, the Commission discussed its concerns regarding the impact of advertising on the CBC's programming choices. The Commission considered the possibility of allowing commercial sponsorship for a limited trial period to assess the impact on CBC's programming choices. It would, however, be extremely difficult to measure the impact over a short trial period, and the Commission is concerned that a trial of medium or long duration could have adverse consequences that could be hard to correct, including the loss of the service's distinctive character, which listeners appreciate so much.

89. The Commission considers that the disadvantages outweigh the benefits to be derived from this initiative. Accordingly, the Commission denies the Corporation's request to broadcast brief sponsorship messages.

Canadian content and talent development

90. Radio One and Radio Two have existing conditions of licence requiring that 50% or more of the Category 2 (general popular) musical selections broadcast each week be Canadian. These selections must also be scheduled in a reasonable manner throughout the broadcast day (6:00 a.m. to 12:00 midnight). The Commission determines compliance with this condition of licence by monitoring a random week of broadcasts.

91. During the current licence term, Radio Two was found to be in compliance with this condition of licence.

92. Radio One, however, in the week monitored only by the Commission, was found to have broadcast a level of only 45.4% Canadian content. The CBC acknowledged that it was in breach of the condition for the week in question, and explained that safeguards had been put in place to ensure that it would not happen in the future.

The role of a public broadcaster is to feed Canadian intelligence, showcasing Canadian talent, as researchers, thinkers, writers, and performers. (Public Consultation at Vancouver)

93. The Commission considers that the CBC has an extremely important role to play in the promotion and exposure of Canadian artists and that the Canadian content levels that the CBC commits to maintain are minimum amounts to be achieved. The Commission notes that the period randomly chosen to monitor the performance of Radio One coincided with the death of Frank Sinatra and the CBC's broadcast of retrospectives of his music. While acknowledging that the lack of compliance in this case may have been due to an extraordinary event, the Commission requires Radio One to file quarterly self-assessment reports with the Commission during the first year of the new licence term. This requirement is set out in Appendix I to the Preamble. These reports must include all musical selections played on a weekly basis, and identify which selections are Canadian. In this manner, the Commission will satisfy itself that the CBC has corrected the problem, and that the safeguards that have been implemented are effective.

94. The Commission has re-imposed on both Radio One and Radio Two the current conditions of licence with respect to Canadian content in Category 2 music. The text of the conditions are set out in the Appendix to this decision.

95. With respect to Canadian content in Category 3 music (traditional and special interest), both Radio One and Two were found to be in compliance with their existing conditions of licence, which require that at least 20% of the musical selections played weekly in this category must be Canadian. These conditions of licence have also been re-imposed, and are set out in the Appendix to this decision.

96. The CBC indicates that some $6 million is currently spent annually on direct payments to Canadian artists and artistic organizations for initiatives with respect to Canadian talent development. The CBC anticipates that such payments will remain at similar levels over the course of the upcoming licence term. The Commission considers these initiatives to be an important part of the CBC's unique nature and an integral part of the Canadian broadcasting and cultural landscape. The Commission applauds the Corporation for these efforts, expects them to continue and, if possible, increase throughout the new licence term.

Extension of coverage

97. A significant issue raised during the CBC's renewal was the limited coverage of the Radio Two service in a number of provinces. While Radio One is currently available to 96% of the English-language population, Radio Two reaches only 74% of the English-language population. Furthermore, Radio Two reaches less than 50% of the total population in Newfoundland and Saskatchewan. In New Brunswick and British Columbia Radio Two reaches approximately 67% and 73% respectively of the English-language population. The Commission considers this situation to be unacceptable.

They are talking about a third radio station. We in Lloydminster would be tickled pink to get one that we can hear,. (Public Consultation at Edmonton)

98. Concerns that the CBC extend its radio coverage date back to the early seventies. In 1978, the Corporation developed its "Long Range Radio Plan" (the Plan) in which it identified the CBC's future frequency requirements for its radio transmitters. (Reference to the Plan was made in Public Notice CRTC 1983-22.) The Plan lists the location of all existing and future CBC radio transmitters and is published so that all applicants for new radio undertakings are able to take the CBC's future plans into account when developing proposals for new radio services. The CBC designed its transmitter systems in accordance with coverage criteria which were developed to ensure that Canadians are well served by the CBC radio networks.

99. In both Decision CRTC 88-181 and Decision CRTC 93-95, in which the CBC radio network licences were renewed, the Commission highlighted the importance of the extension of radio services to unserved communities and noted its minimum expectations with respect to the extension of Radio Two service coverage. These expectations have not all been met.

100. With respect to Radio One, the Commission expects the CBC to add transmitters at Cherryville, British Columbia and Gilmour, Ontario to the Plan, and to advise the Commission whenever further changes to the Plan are proposed.

101. With respect to Radio Two, the Commission notes that all Canadians pay for CBC radio services and that it should be a high priority of the Corporation to extend its reach throughout the country.

102. Accordingly, the Commission expects that the CBC will extend its Radio Two service to at least:

50% of the English-language population of each province, within the first two years of the new licence term,

75% of the total English-language Canadian population, within the first two years of the new licence term,

75% of the English-language population of each province by the end of the licence term.

103. The Commission requires the CBC to submit, within 12 months of the date of this decision, a detailed seven-year schedule for implementation of its Radio Two transmitters, together with the English-language population covered, in each province, for each year. The Commission expects that, in planning this schedule, a proper balance between the provinces that are below and those above the overall 75% target be maintained each year.

104. As set out in Appendix 1 to the Preamble, the Commission also requires that the CBC file, as part of its Annual Report, information indicating the additional transmitters that were implemented during the previous year and the changes in population served.

Licence terms and other matters

105. The Commission renews the licences of the CBC English-language television and radio networks, as well as those of 15 CBC English-language regional television programming undertakings listed in the Appendix to this decision, until 31 August 2007. The licences are subject to the conditions set out in the Appendix to this decision, as well as to any conditions set out in the licences to be issued.

106. The licence renewal of the regional television station CBNT-TV St. John's, Newfoundland and its transmitters (application 199813738) is not discussed in this decision. The decision with respect to that licence renewal will be issued at a later date.

Annual reporting

107. The Commission requires that the CBC file, by 30 November of each year of the licence term, an Annual Report in a format approved by the Commission, containing the information specified in Appendix I of Public Notice CRTC 2000-1 issued today.

Related CRTC documents:

Public Notice CRTC 2000-1 - A distinctive voice for all Canadians: Renewal of the Canadian Broadcasting Corporation's licences

Decision CRTC 2000-2 - Licences for CBC French-Language television and radio renewed for seven-year term

Decision CRTC 2000-3 - Renewal of the licences for Newsworld and Le Réseau de l'information

Public Notice CRTC 1999-97 - Building on success - A policy framework for Canadian television

Decision CRTC 94-437 - Renewal of the English-language and French-language television network licences

Decision CRTC 93-95 - Renewal of the CBC's radio network licences

Decision CRTC 88-181 - Maintaining a distinctive, high quality CBC radio service

Public Notice CRTC 1983-22 - CBC Long Range Radio Plan

Secretary General

This decision is to be appended to the licence. It is available in alternative format upon request, and may also be viewed at the following Internet site:http://www.crtc.gc.ca

Appendix to Decision CRTC 2000-1

Part I

Conditions of licence for the CBC English television network (199902242)

In each of the first two years of the licence term, a minimum average of 5 hours per week;

In each of the next 5 years of the licence term, a minimum average of 6 hours per week.

For the purpose of this condition, priority regional programming is defined as programming in respect of which the principal photography occured more than 150 kilometres outside of Toronto, and that falls within the following categories:

Canadian drama (Category 7)

Canadian music and dance (Category 8)

Canadian variety (Category 9)

Canadian long-form documentary

Canadian entertainment magazine

For the purpose of this condition, long-form documentary programs are defined as original works of non-fiction, primarily designed to inform but may also educate and entertain, providing an in-depth critical analysis of a specific subject or point of view over the course of at least 30 minutes (less a reasonable time for commercials, if any). These programs shall not be used as commercial vehicles.

For the purpose of this condition, Canadian entertainment magazine programs are defined as programs at least 30 minutes long (less a reasonable amount of time for commercials, if any) that devote at least two-thirds of their running time (excluding commercials) to the promotion of Canadian entertainment, including television programs, movies, soundtracks, plays, music, musical and performing arts events, performance artists and off-screen personnel associated with these activities and artists.

2. (a) Subject to (b) below, the licensee shall not broadcast in the peak viewing period (7 p.m. to 11 p.m.) any non-Canadian feature film from Category 7d that was:

Theatrically released in Canada within two years from the date the film is broadcast by the licensee or,

Listed within the top 100 films of Variety magazine's list of top grossing films in the United States and Canada, within the 10-year period preceding the date the film is broadcast by the licensee.

(b) The CBC may broadcast for a maximum of 36 months from the beginning of the licence term feature films referred to in a) for which the CBC already holds the broadcast rights at the time of this decision.

3. (a) The licensee shall adhere to the standards for children's advertising set out in the Corporation's Advertising Standards Policy C-5 dated 9 May 1990 and entitled Advertising Directed to Children Under 12 Years of Age, as amended from time to time and approved by the Commission. As a minimum, the licensee shall adhere to the standards set out in the Canadian Association of Broadcasters' (CAB) Code on Broadcast Advertising to Children, as amended from time to time and approved by the Commission.

(b) The licensee shall not broadcast any commercial message during any child-directed programming, nor broadcast any child-directed commercial message between programs directed to children of pre-school age. For the purpose of this condition, programs directed to children and scheduled before 12:00 noon during school-day morning hours will be deemed to be programs directed to children of pre-school age.

4. The licensee shall adhere to its self-regulatory guidelines on sex-role portrayal, as amended from time to time and approved by the Commission and, as a minimum, to the CAB's Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission.

5. The licensee shall adhere to the guidelines on the depiction of violence in television programming set out in the CAB's Voluntary Code Regarding Violence in Television Programming, as amended from time to time and approved by the Commission.

1. The licensee shall caption all local/regional news programming, including live segments, using either real-time captioning or another method capable of captioning live programming.

2. (a) The licensee shall adhere to the standards for children's advertising set out in the Corporation's Advertising Standards Policy C-5 dated 9 May 1990 and entitled Advertising Directed to Children Under 12 Years of Age, as amended from time to time and approved by the Commission. As a minimum, the licensee shall adhere to the standards set out in the Canadian Association of Broadcasters' (CAB) Code on Broadcast Advertising to Children, as amended from time to time and approved by the Commission.

(b) The licensee shall not broadcast any commercial message during any child-directed programming, nor broadcast any child-directed commercial message between programs directed to children of pre-school age. For the purpose of this condition, programs directed to children and scheduled before 12:00 noon during school-day morning hours will be deemed to be programs directed to children of pre-school age.

3. The licensee shall adhere to its self-regulatory guidelines on sex-role portrayal, as amended from time to time and approved by the Commission and, as a minimum, to the CAB's Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission.

4. The licensee shall adhere to the guidelines on the depiction of violence in television programming set out in the CAB's Voluntary Code Regarding Violence in Television Programming, as amended from time to time and approved by the Commission.

Condition of licence for CBLT Toronto and its transmitters

The licensee shall not solicit any advertising from the areas served by the Blenheim/Chatham, Kitchener, London, Sarnia and Wingham, Ontario transmitters.

List of CBC regional television stations and their transmitters subject to this decision

1. The licensee shall not broadcast any commercial message of category 5 except:

a) during programs that are available to the network only on a sponsored basis, or

b) as required to fulfill the requirements of the legislation of the Parliament of Canada pertaining to elections.

2. The licensee shall ensure that 50% or more of the category 2 music selections broadcast each broadcast week be Canadian and that these selections be scheduled in a reasonable manner throughout the broadcast day.

3. The licensee shall ensure that 20% or more of the category 3 music selections broadcast each broadcast week be Canadian.

4. The licensee shall adhere to its self-regulatory guidelines on sex-role portrayal, as amended from time to time and approved by the Commission and, as a minimum, to the Canadian Association of Broadcasters' Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission.

Part IV

Conditions of licence for the Radio Two network (199901848)

1. The licensee shall not broadcast any commercial message of category 5 except:

a) during programs that are available to the network only on a sponsored basis, or

b) as required to fulfill the requirements of the legislation of the Parliament of Canada pertaining to elections.

2. The licensee shall ensure that 50% or more of the category 2 music selections broadcast each broadcast week be Canadian.

3. The licensee shall ensure that 20% or more of the category 3 music selections broadcast each broadcast week be Canadian and that these selections be scheduled in a reasonable manner throughout the broadcast day.

4. The licensee shall adhere to its self-regulatory guidelines on sex-role portrayal, as amended from time to time and approved by the Commission and, as a minimum, to the Canadian Association of Broadcasters' Sex-Role Portrayal Code for Television and Radio Programming, as amended from time to time and approved by the Commission.